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Trump Administration Reclassifies Cannabis, Halves Tax Burden

5/3/2026

Summary

Story summary

The U.S. President Donald Trump administration began easing controls on marijuana and reclassifying cannabis.
Current tax rules impose effective rates near 70 percent on cannabis firms, while reclassification could halve those taxes and allow deductions for rent and payroll.
The Treasury is weighing retroactive relief for companies that owed $2.24 billion in 2025 taxes.
Public firms Trulieve and Curaleaf reported federal tax liabilities over $1.6 billion while the DEA now permits business registration.

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Story summary

The U.S. President Donald Trump administration began easing controls on marijuana and reclassifying cannabis.
Current tax rules impose effective rates near 70 percent on cannabis firms, while reclassification could halve those taxes and allow deductions for rent and payroll.
The Treasury is weighing retroactive relief for companies that owed $2.24 billion in 2025 taxes.
Public firms Trulieve and Curaleaf reported federal tax liabilities over $1.6 billion while the DEA now permits business registration.